{"id":6309,"date":"2026-02-04T05:20:40","date_gmt":"2026-02-04T05:20:40","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=6309"},"modified":"2026-02-04T05:20:40","modified_gmt":"2026-02-04T05:20:40","slug":"michael-burry-warns-bitcoin-breakdown-could-trigger-sickening-cascade","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=6309","title":{"rendered":"Michael Burry Warns Bitcoin Breakdown Could Trigger \u201cSickening\u201d Cascade"},"content":{"rendered":"

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  • Michael Burry warned that Bitcoin\u2019s slide is \u201csickening\u201d and could trigger a \u201ccollateral death spiral\u201d across financial markets, specifically targeting firms like Strategy Inc. (MSTR).<\/span><\/li>\n
  • Bitcoin fell below $73,000, a 40% drop from its 2025 peak, which Burry claims exposes it as a speculative trade rather than the \u201cdigital gold\u201d hedge it was marketed to be.<\/span><\/li>\n
  • A $1 billion liquidation in tokenised metals was linked to the crypto crash, as Burry noted that falling prices are forcing institutional players to dump profitable gold and silver positions to cover crypto losses.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n

    Famous investor Michael Burry, portrayed by Christian Bale in the movie The Big Short,<\/em> is warning that Bitcoin\u2019s (BTC) latest slide could trigger large losses for listed companies and spill over into other markets.<\/p>\n

    In a Substack post, Burry said BTC has been exposed as a purely speculative trade rather than a reliable hedge against currency debasement, and unlike gold and silver, which recently hit record highs on geopolitical tension and dollar fears, the primary crypto asset has fallen through several key price levels.<\/p>\n

    BTC briefly dipped below US$73,000 (AU$111K), erasing gains since Donald Trump\u2019s November 2024 re-election. The coin is down more than 40% from its early-October peak, according to CoinMarketCap data.<\/p>\n

    \"\"\"\"
    Source: TradingView.<\/figcaption><\/figure>\n

    Related: Michael Saylor Hints at Fresh Bitcoin Buy as Strategy Stacks More BTC\u00a0<\/strong><\/p>\n

    Bitcoin in a Sickening Condition, Says Burry<\/h2>\n

    Burry called current conditions \u201csickening,\u201d arguing that another 10% decline would leave aggressive corporate buyers such as Strategy billions of dollars underwater and effectively cut off from raising fresh capital.\u00a0<\/p>\n

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    \n

    There is no organic use case reason for Bitcoin to slow or stop its descent.<\/em><\/p>\n<\/div>\n

    \n Michael Burry, American Investor and Hedge Fund Manager <\/div>\n<\/div>\n

    Nearly 200 public companies now hold Bitcoin on their balance sheets, he noted, and those positions must be marked to market. If prices keep falling, he expects risk officers to push for sales. Basically selling their positions in other assets to cover up losses.<\/p>\n

    At the same time, though, Burry said crypto\u2019s aggregate size limits the chance of a systemic crisis. Bitcoin\u2019s market value is below about US$1.5 trillion (AU$2.30 trillion), household exposure is modest, and past failures from Terra to FTX did not destabilise traditional finance.<\/p>\n

    Nevertheless, he sees pockets of serious stress. Burry linked falling crypto prices to what he described as up to US$1 billion (AU$1.53 billion) of liquidations in tokenised gold and silver futures at month-end. Because those products are not backed by physical metal, he warned they can overwhelm real bullion trading and create a \u201ccollateral death spiral.\u201d\u00a0<\/p>\n

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    \n

    It looks like up to $1 billion in precious metals were liquidated at month\u2019s very end as a result of falling crypto prices. If Bitcoin were to fall to $50,000, miners would go bankrupt, while tokenized metals futures would collapse into a black hole with no buyer.<\/em><\/p>\n<\/div>\n

    \n Michael Burry, American Investor and Hedge Fund Manager <\/div>\n<\/div>\n

    Read more: Bitcoin Breaks Key Support as Bears Circle Below $80K<\/strong><\/p>\n<\/p><\/div>\n

    Bitcoin,Market Analysis#Michael #Burry #Warns #Bitcoin #Breakdown #Trigger #Sickening #Cascade1770182440<\/p>\n","protected":false},"excerpt":{"rendered":"

    Michael Burry warned that Bitcoin\u2019s slide is \u201csickening\u201d and could trigger a \u201ccollateral death spiral\u201d across financial markets, specifically targeting firms like Strategy Inc. (MSTR). Bitcoin fell below $73,000, a 40% drop from its 2025 peak, which Burry claims exposes it as a speculative trade rather than the \u201cdigital gold\u201d hedge it was marketed to<\/p>\n","protected":false},"author":1,"featured_media":6310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[91,2160,2159,2157,1605,2161,902,220],"class_list":{"0":"post-6309","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"tag-bitcoin","9":"tag-breakdown","10":"tag-burry","11":"tag-cascade","12":"tag-michael","13":"tag-sickening","14":"tag-trigger","15":"tag-warns"},"yoast_head":"\nMichael Burry Warns Bitcoin Breakdown Could Trigger \u201cSickening\u201d Cascade - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=6309\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Michael Burry Warns Bitcoin Breakdown Could Trigger \u201cSickening\u201d Cascade\" \/>\n<meta property=\"og:description\" content=\"Michael Burry warned that Bitcoin\u2019s slide is \u201csickening\u201d and could trigger a \u201ccollateral death spiral\u201d across financial markets, specifically targeting firms like Strategy Inc. 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